Borouge, an Abu Dhabi–based petrochemicals major, has announced that it has secured the approval from its shareholders at the Annual General Meeting (AGM) for distribution of $650 million (7.94 fils per share) dividends for 2024 and also a 2.5% share buyback programme.

 

With these new dividends, Borouge's total annual payout to the shareholders has surged to $1.3 billion (15.88 fils per share).

 

Borouge is a joint venture between Abu Dhabi National Oil Company (Adnoc) and Austria- based Borealis, a leading provider of chemical and innovative plastics solutions.

 

Speaking at the AGM, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, and Chairman of Borouge, reaffirmed the company's commitment to delivering substantial shareholder returns in front of more than 250 retail and institutional shareholders, investors, and analysts, following the recent announcement of Borouge Group International, a $60 billion global polyolefins leader.

 

"As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse - combining scale, resilience and innovation," stated Al Jaber. 

 

In 2025, Borouge intends to increase its dividend to at least 16.2 fils per share, which will serve as the minimum payout for Borouge Group International through to 2030, he noted.

 

Al Jaber pointed out that the current Borouge share price would give investors a 40% minimum cumulative dividend return from 2025 to 2030, the highest in the UAE.

 

"Simply put, Adnoc and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors," he added.

 

ADNOC and OMV, as the main shareholders in Borouge Group International, have announced their intention, post closing of the transaction, to offer an attractive estimated total dividend of $2.2 billion, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030.

 

The AGM also approved a share buyback of up to 2.5% of outstanding shares via open-market transactions, subject to market conditions and regulatory approvals. 

 

The buyback reflects the company's strong confidence in its future prospects and the significant upside potential beyond the current share price.

 

With the creation of Borouge Group International, expected in the first quarter of 2026, investors in the new entity are expected to benefit from future earnings growth that is set to translate directly into higher dividend payments.

 

This will be supported by the company's intention to a 90 percent net income payout ratio through to 2030.

 

The dividend will be supported by a strong balance sheet, resilient profitability, substantial free cash flow generation and the backing of its majority shareholders, global energy leaders Adnoc and OMV, he added.-TradeArabia News Service